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For many college seniors, graduation means setting up life by searching for a job, finding a new place to live, and establishing good spending habits. One of the best ways for recent college graduates to build a favorable financial future is by establishing the best credit history possible. This means avoiding some of the most common credit mistakes made by recent college graduates.

Maxing out a credit card

Using credit cards is one of the easiest ways to build a favorable credit history, but only if you can immediately pay off your monthly balance. Even though you suddenly have access to thousands of dollars, you need to avoid the temptation to spend the limit. If you do spend more than you can reasonably pay off, you will begin to accumulate interest rates and possibly be trapped in cycles of debt early on in your life.

Skipping a credit card altogether

While some people are guilty of overusing credit cards, other people choose to skip credit card use altogether. In reality, credit cards are very useful for purchasing airline tickets, making car rentals, and buying items online. Establishing good credit card spending habits also shows responsibility, allowing you to build a positive credit history and a higher credit score.

Failing to check credit reports

The only way to determine if there is an error on your credit report is by checking it. As soon as you graduate, you should take the time to download your credit report, review the information for accuracy, and report any errors to the credit-reporting agency. Not only will this help you clear up any problems, but it will also help you determine just how much you need to improve your credit score over the next few years.

Call (847) 282-4899 to schedule a free bankruptcy evaluation with Cutler & Associates, Ltd. We have more than 25 years of experience handling consumer bankruptcy cases in the Chicagoland area. You can schedule an appointment at one of our seven convenient locations, including Aurora and Schaumburg.